Lafayette Real Estate BlogRecently posted or modified blog posts in the category - Buying a Homehttps://www.lafayettehomepros.com/blog/Copyright LafayetteHomePros.com2020-12-14T08:55:55-07:00tag:lafayettehomepros.com,2012-09-20:673How to Plan and Organize a Move<img style="display: block; float: right; margin-bottom: 30px; margin-left: 15px; width: 475px;" src="https://assets.site-static.com/userfiles/2179/image/how-to-plan-a-moving-timeline.jpg" alt="How to Organize a Moving Timeline" width="475" />Moving is a big project. For most people, moving means hours of packing, planning, budgeting, and cleaning to make the relocation possible. Those planning to move sometime in the next year can make their relocation a success by getting ready as soon as possible.
By decluttering well before a relocation occurs, and by packing well in advance of the move, people can avoid some of the last-minute rush that can make moving seem like an overwhelming activity.
Start Decluttering One Year In Advance
Clutter can make any relocation a more expensive and difficult task than it needs to be. By getting rid of clutter before the relocation takes place, people can save themselves hours of time spent packing and unpacking and also money by reducing the amount of stuff that needs to be relocated.
Decluttering can be a long and ongoing process. To start decluttering, people should go through their house, room by room, closet by closet, sorting through the things they no longer use. Donating items that are no longer needed but which are still useful can be a very easy way to get rid of clutter. Selling can take more time, but if the clutter that's being sold can bring in a good price, it can be worth it.
Begin Packing Four Months In Advance
Gathering packing materials four months in advance helps people get a head start on the relocation process. The first things to be packed during a major relocation are things people do not anticipate they'll need before the relocation actually takes place. Usually, this consists of seasonal clothes and items like holiday decorations.
Closer to the time of the move, people can start to pack things like the items they use every day. Labeling every box well can help them navigate the boxes and keep items organized before and after the move.
Sometimes, a sticker system can help people <a href="https://blog.unpakt.com/best-way-label-moving-boxes/" target="_blank">label boxes quickly and efficiently</a>. For example, if every box that is intended to go in the master bedroom has a yellow sticker on it, then people don't have to write the word "master bedroom" over and over again.
Contact Moving Company Three Months In Advance
Three months in advance of the move, people can contact moving companies for quotes. Contacting moving companies in advance ensures those who are moving will be able to find a company on time for their move date.
Pack a Go Bag a Few Weeks In Advance
Packing a go bag a few weeks in advance is important. Go bags contain urgent items like pajamas, a toothbrush, toothpaste, and medications - things that the person will need in their first few nights in their new home. It's important for people to keep the go bag separate from the other boxes and items being moved.
Moving Soon? Start Planning ASAP
Moving takes a lot of time and can be a very work-intensive process. Those who are moving soon should start planning as soon as possible. The more time people spend planning and getting ready before the day of their move, the less stressful their upcoming relocation will be.2020-12-14T06:45:00-07:002020-12-14T08:55:55-07:00Robbie Breauxtag:lafayettehomepros.com,2012-09-20:670The Basics of the Home Down Payment<img style="display: block; float: right; margin-bottom: 30px; margin-left: 15px; width: 475px;" src="https://assets.site-static.com/userfiles/2179/image/how-to-determine-a-home-down-payment.jpg" alt="Down Payment Basics" width="475" />There are many advantages to owning a home, including building equity and upgrading a space to meet lifestyle needs. Buying a home is one of the largest investments a person will make during their lifetime. This makes it a good idea to get to know more about making a down payment on a mortgage product.
Generally speaking, the majority of people finance their home through a home loan. This breaks down a larger loan into more affordable monthly payments. However, there are a number of considerations as to how much to invest into a home from the outset.
What is a feasible amount for a down payment? What factors may come into play that will influence that decision? The following information details the down payment basics of a mortgage.
For informational purposes only. Always consult with a licensed mortgage or home loan professional before proceeding with any real estate transaction.
Down Payment (Conventional Mortgage Loan)
First-time buyers may first stop at their local bank or current lending institution to learn about a conventional mortgage loan. The buyers will want to know whether they will qualify for a loan and how much a lender will want as a down payment.
It can be hard for a lender to approve an applicant for a home loan when a potential borrower cannot make a sizeable down payment. That being said, there are other factors that will go into the lender's determination.
It can be difficult for buyers to come up with 20 percent. This amount is often ideal for a lender, as it signals serious intent and establishes some initial equity. This amount will reduce the risk for the lending institution, as such a borrower will be less likely to walk away from the home loan, continuing to pay it off.
When it comes to a conventional loan, there are benefits to making a larger down payment. A lender may be able to offer better terms, and a borrower may be able to pay off the loan without also having to pay PMI (<a href="https://www.nerdwallet.com/article/mortgages/pmi-private-mortgage-insurance" target="_blank">Private Mortgage Insurance</a>). In such a situation, the borrower ends up paying less back to the lender institution, as they often get an attractive interest rate and avoid PMI.
Small Down Payment
Some buyers may want to make a small down payment. The good news is it is still possible for applicants to be approved for a loan, but they will pay mortgage loan insurance or PMI until there is enough equity in the home. However, this extra expense does not go toward paying off the loan itself.
A person may want to make a smaller down payment for a number of reasons, including:
Covering closing costs
Making initial upgrades to an older home
Keeping extra funds available during uncertain times
Some individuals may also choose to look at <a href="https://www.lafayettehomepros.com/blog/types-of-mortgages/">other loan products</a>, like VA or FHA loans, that may not require a large down payment. Terms and conditions can vary by mortgage loan product and lender. Additionally, a federally backed loan often makes it easier for a potential borrower to get approved, as the requirements are not as stringent as with a conventional loan product.
Other Factors
The down payment is only one factor that goes into a lender's determination. Other areas reviewed include the applicant's credit history, amount of debt, and record of employment. Even with a larger down payment, an individual may have to improve their credit score or pay down their debt to be approved for a mortgage loan.
Individuals who are interested in buying a home may want to start exploring the requirements of a lender. Starting by answering some basic questions can help a potential borrower understand more about where they currently stand and how they may need to improve before actually applying for a home loan.
For informational purposes only. Always consult with a licensed mortgage or home loan professional before proceeding with any real estate transaction.2020-12-07T09:35:00-07:002020-12-07T11:44:29-07:00Robbie Breauxtag:lafayettehomepros.com,2012-09-20:649How Drive Times and Nearby Transit Options Factor Into the Home Buying Process<img style="display: block; float: right; margin-bottom: 30px; margin-left: 15px; width: 475px;" src="https://assets.site-static.com/userfiles/2179/image/drive-times-when-buying-a-home.jpg" alt="Drive Times and Public Transit Considerations When Buying a Home" width="475" />For many people, a short drive time is an important feature in a home. At times, finding a home with a reasonable commute can be a challenge for home buyers. Knowing what to look for and how to make a commute shorter can help home buyers improve their overall quality of life. The following tips can help them as they look for a home that's an acceptable distance from their workplace or close to public transportation.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
Consider Traffic Patterns
Traffic patterns fluctuate throughout the day, and commute times during rush hour can be far greater than commute times during off-peak hours. The only way to determine for sure whether the commute time from a certain home is acceptable is to drive the commute to and from work during a normal work day. This will give the home buyer a sense of how much time they'll spend driving to and from work if they buy that house.
Public Transportation Makes a Difference
Not only does accessibility to <a href="https://www.nar.realtor/articles/public-transportation-boosts-property-values" target="_blank">public transportation raise a home's value</a>, but it also makes a home more convenient. Home buyers who are thinking of purchasing a house that is far from their workplace can make their commute easier by purchasing a home close to a bus or subway line. Factors they should consider when trying to decide if public transportation is a viable option for their work commute include:
Cost for a monthly pass
Whether the commute will be done by train or bus
Hours the public transportation runs
Don't Forget Road Noise and Street Business
Home buyers who purchase a home that's close to their office sometimes find themselves living on a busy street with a lot of traffic. Even for a homeowner who doesn't have children or pets, streets that have a lot of traffic can also have a lot of noise.
Solutions to a Long Commute Time
Just because a home is located far away from the home buyer's workplace doesn't mean that their quality of life must be sacrificed. Home buyers who want to buy a home that is far from their workplace can find creative ways to change their commute, including:
Change work hours so the commute will be during off-peak commute times, if possible.
Start working from home, if given the option.
Take public transportation to spend less time driving in traffic.
Those who want to minimize the hours they spend on the road should shop around to find the best home for their needs. Homes that are close to centers of business where people work are often more costly than homes located farther away. Buyers can speak with their real estate professional about the drive time they prefer, and explore neighborhoods they might not otherwise consider.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.2020-11-03T15:11:00-07:002020-11-04T15:21:46-07:00Robbie Breauxtag:lafayettehomepros.com,2012-09-20:639How to Design a New Construction Home<img style="display: block; float: right; margin-bottom: 30px; margin-left: 15px; width: 475px;" src="https://assets.site-static.com/userfiles/2179/image/tips-for-building-a-new-construction-home.jpg" alt="Designing Your Forever Home: Tips for Home Buyers" width="475" />There are many decisions that need to be made for those designing a new construction home, but knowing needs and wants, collaborating with members of the household, and taking an organized approach to the process can help. Below are some tips and also factors to consider when designing a new construction home.
Custom, Production, or Semi-Custom Home?
Before the home buyer can get started with the home design process, they must first make decisions about the type of home they'd like to buy and the type of professionals they'd like to hire.
There are three different types of new construction homes. Custom homes are made from a unique design, created entirely for the buyer. Custom homes tend to require the most time to build and can be the most expensive, but for a homeowner with specific needs, a custom home may be ideal.
Production homes are homes that are chosen from a template design (usually with very limited customization options). Production homes require the least time to build and are often the least costly.
Semi-custom homes have more options for customization than production homes, but the homeowner is still limited to the options presented by the builder.
Discuss Goals, Needs, and Wants
It's important for buyers to know their goals for the home. Questions they can discuss with members of their household include:
How long do we plan to stay in this house?
Do we want to own pets?
What kind of hobbies and activities do we want to engage in on the property?
How long do we want our commute to be?
Shop Around for the Perfect Lot
Shopping around for the perfect lot is important. When trying to buy a lot, it's important for buyers to take into consideration size, features, view, distance to local services, and <a href="https://convene.com/catalyst/long-commute/" target="_blank">commute time</a>. It's also important to get an inspection of the property, as they can reveal problems like ground or water pollution, air pollution, and other factors that can directly impact a lot's viability as a place to build a home. Making a list of must-haves and wants for the perfect lot can make finding a lot much easier.
Make Time, Get Started Early
The real key to designing a forever home is to get started early, especially if the home is a custom home, which can take a long time to construct. Most home buyers are unaware of how long it can take to work with a building company on the construction of their home.
Often, home buyers must make many choices throughout the home construction process. If you're a homeowner who would like to build a new construction home, get started as soon as possible.2020-10-20T07:31:00-07:002020-10-22T07:33:42-07:00Robbie Breauxtag:lafayettehomepros.com,2012-09-20:6275 Sustainable Materials for Your New Construction Home<img style="display: block; float: right; margin-bottom: 30px; margin-left: 15px; width: 475px;" src="https://assets.site-static.com/userfiles/2179/image/sustainable-home-construction-materials.jpg" alt="Sustainable Construction Materials for Homeowners Building Their New Home" width="475" />Building a new construction home can be a lot of fun, especially if you're focused on innovation that can improve your quality of life. For homeowners who prioritize sustainability, there are many materials available that make minimal impact on the environment and make excellent building materials. If you would like to build an eco-friendly new construction home, these tips can help. Picking the right material can help reduce your home's carbon footprint while at the same time improve your quality of life.
Reclaimed Wood
Reclaimed wood has been around for a long time, but it's still one of the top sustainable materials that homeowners can use in their new construction homes. For starters, it requires no destruction of renewable or natural resources. All reclaimed wood comes from existing structures.
Additionally, though you can buy it through commercial suppliers, some homeowners get their reclaimed wood locally from demolition sites and other homeowners who are tearing out old structures that no longer serve a function. Sold like this, it's often inexpensive and easy to acquire.
Reclaimed wood has character. With indentations, marks, scratches, stains, and other surface textures, this type of wood makes interesting material to use for wooden floors.
Cork
Cork flooring is becoming more popular with time. It's a natural material made from the bark of cork oak trees. As a flooring material, it's naturally somewhat soft, spongy and almost rubbery in texture, which makes it a safer and softer surface. Cork must be sealed in order to be protected from dirt, grit, and stains.
When properly swept on a regular basis, and if kept sealed, cork is an excellent flooring material with an interesting texture and appearance that makes it a good fit in many modern homes. Homeowners appreciate the appearance of cork, which is almost like wood, and the fact that cork is easy to maintain.
Cool Roof
Dark-colored rooftops have been popular for years, with many homeowners installing dark gray or black roofing on their home. Unfortunately, these dark-colored rooftop materials can heat attics and upper floors of homes and buildings during summer months. Dark-colored roof materials tax HVAC systems trying to keep homes cool in the summer.
<a href="https://www.energy.gov/energysaver/design/energy-efficient-home-design/cool-roofs" target="_blank">Cool roofing material</a> is just white or light-colored roof material that reflects sunlight back at the atmosphere, thus keeping the home cool. Cool roofing material can keep an attic up to 50 degrees cooler in summer months, depending on the conditions outside. If the attic is not properly insulated, this can lead to constant presence of warm air near the ceiling of any home interior, causing the HVAC system to run constantly.
Low-Flow Fixtures
Low-flow plumbing fixtures help homeowners save water. In recent years, low-flow fixtures have become so effective that toilets of today may use as little as 1.28 gallons per flush, while toilets of the 1950s and 1960s used as much as 7 gallons per flush. For a standard family of four, that amounts to thousands of gallons saved per year, every year!
In addition to low-flow toilets, there are other types of low-flow fixtures that can help homeowners save money. Low-flow faucets and shower heads also reduce the amount of water that homeowners use, and of course, ENERGY STAR appliances like dishwashers can also save money.
At one time, low-flow fixtures had a reputation for not working as well as their full-flow counterparts. Today, most low-flow fixtures work just as well if not better than their older appliance counterparts, and they save homeowners money by reducing household water usage.
Rammed Earth Brick
Rammed earth brick is a natural brick made from earth, binder, and pressure. Rammed earth brick is an excellent insulator, plus it's fire-resistant and strong. Some of the oldest structures on earth have been made by rammed earth. Though it is not widely available, some construction companies are starting to specialize in rammed earth brick.
Contact a Builder with Expertise
Are you building a new home soon? Using sustainable construction materials can make your home worth more while reducing your utility bills as you live in the home.
Work with a builder who has expertise and a background in building with sustainable materials. As you interview builders, find out what their experience is with green building materials, and prioritize builders who have experience with this material. Hiring builders who have expertise can help make your home building experience a success.2020-10-13T04:54:00-07:002020-10-13T07:04:47-07:00Robbie Breauxtag:lafayettehomepros.com,2012-09-20:5837 Types of Mortgages for Home Buyers to Discover<img style="display: block; float: right; margin-bottom: 30px; margin-left: 15px; width: 475px;" src="https://assets.site-static.com/userfiles/2179/image/different-types-of-mortgages.jpg" alt="What Are the Different Types of Mortgages?" width="475" />In most cases, shopping for a house also means shopping for a mortgage. There are many loan options available, and each one is different and more likely to be a fit for different buyers. Most loans will fit into more than one category; for instance, someone may have a 15-year adjustable rate mortgage or a 30-year fixed rate mortgage, and either could be a jumbo or an FHA. Home buyers can learn the basics of each loan to help them choose the right one to fit their financial situation.
For informational purposes only. Always consult with a licensed mortgage or home loan professional before proceeding with any real estate transaction.
Fixed-Rate Loan
The most common and straightforward conventional home loan, fixed-rate loans have the same interest rate and monthly payment for the entire life of the loan. The most common terms for these loans are 15 or 30 years, and they can be great for home buyers who want predictability throughout the entire time they are paying off their mortgage. Additionally, fixed-rate loans can be great for those who plan to stay in their homes for several years, as they allow buyers to build up a predictable level of equity. The potential downside is that while borrowers will not be harmed by rising interest rates, they won't receive the benefit of falling rates either.
Adjustable-Rate Loan
The rates typically start off lower for an <a href="https://www.nerdwallet.com/article/mortgages/pros-cons-adjustable-rate-mortgages" target="_blank">adjustable-rate mortgage</a> (ARM) than those of fixed-rate loans. However, after a set period of time—usually five or ten years—the interest rates will match current prime interest rates. Once a year, the rate will be adjusted. If interest rates go up, so will the homeowner's monthly mortgage payment. When rates go down, the monthly payment will as well. These loans are more accessible to people who have lower credit scores and can also be a good option for people who think they will sell and move before the fixed payment period of their loan is over.
FHA Loan
Federal Housing Administration (FHA) loans are a great option for home buyers who may not have large savings for a down payment. Qualified buyers can put down as little as 3.5% because these are government-backed loans. FHA loans are fixed-rate and offered in 15- or 30-year terms. However, buyers will be required to pay mortgage insurance over the life of the loan.
USDA Loan
The USDA Rural Development Loan is an option that can help people buy homes in rural areas. This loan requires no down payment, offers discounted interest rates, and is financed by the federal government. Buyers will be required to purchase mortgage insurance and must not have a debt load that exceeds their income by more than 41%.
VA Loan
Qualified veterans with U.S. military service may be able to get a Veterans Affairs loan. These loans are excellent alternatives to conventional loans because they do not require a down payment or mortgage insurance, meaning that buyers do not have to spend time saving for a home. Veterans will need 90 days consecutive service during wartime, 180 days during peacetime or six years in the reserves to qualify. There are also minimum requirements for the types of homes that can be purchased.
Jumbo Loan
Buyers who are interested in luxury homes will need to find a mortgage that is built for this type of transaction. Jumbo loans are mortgages over a certain dollar amount; the limits will vary by location and are adjusted periodically to address changing home prices. These can come in fixed or adjustable forms and require high credit scores (typically 700 or more) along with a down payment.
Interest-Only Mortgage
An interest-only mortgage only requires payment of the lender's interest charge each month for the interest-only phase of the loan. The loan principle does not go down during the interest-only period, which typically lasts for seven to ten years. This can be an appropriate choice for borrowers who have income that varies from month to month and those who receive large annual bonuses. Borrowers will have to make periodic payments to get ahead on this type of loan and show substantial assets or a proven ability to pay in order to qualify.
No one mortgage option is going to fit every borrower. The right loan choice will depend on factors that include credit score, income, the type of home and whether the home is rural, urban or suburban. By thoroughly exploring each loan option and running some numbers to see what life will be like throughout the term of the loan, borrowers can choose the option that fits their situation best and allows them to fulfill their homeownership dreams.
For informational purposes only. Always consult with a licensed mortgage or home loan professional before proceeding with any real estate transaction.2020-09-01T08:51:00-07:002020-09-03T08:53:27-07:00Robbie Breauxtag:lafayettehomepros.com,2012-09-20:577What to Know About Home Inspections<img style="display: block; float: right; margin-bottom: 30px; margin-left: 15px; width: 475px;" src="https://assets.site-static.com/userfiles/2179/image/why-you-should-always-get-a-home-inspection.jpg" alt="Home Inspections During the Home Buying Process: What to Know" width="475" />If you're buying a home, you'll probably decide to get a home inspection. If you've never purchased a home before, you may not be very familiar with the home inspection process. The more you know about getting home inspections, the less stressful this part of the home buying experience will be. Here's what you need to know.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
Are Home Inspections Required?
Home inspections are not usually a required part of the home buying process, although many buyers do choose to get an inspection. Without a home inspection, home buyers may have a hard time gauging whether the home they'd like to buy is in good condition.
Just because a home looks like it's in good condition doesn't mean it is. Walls can hide many problems like electrical trouble, plumbing leaks, roof leaks and foundation problems.
Getting a home inspection can help a home buyer discover these problems, which ultimately can lead the buyer to either renegotiate the purchase price, or negotiate with the seller to complete the repairs. For this reason, many home buyers choose to pay the fee of a few hundred dollars to get an official inspection done.
How Can You Find a Good Home Inspector?
Many home buyers find their home inspector through their real estate professional. However, some home buyers choose to find their own inspector. Home inspectors are basically contractors and often advertise their services. A home buyer who chooses their own inspector should check references and licensure to ensure that the inspector they choose knows what they're doing.
Can You Be Present During the Home Inspection?
Yes, home buyers can be present during their home inspection. In fact, it's a good idea to <a href="http://blog.gohomeside.com/blog/5-reasons-why-buyers-should-be-present-during-their-home-inspections" target="_blank">be there while the inspection is taking place</a>. During the inspection, most inspectors will answer home buyer questions about the systems of the house and their condition.
What Happens During a Home Inspection?
During a home inspection, the inspector systematically checks every system of the house they can, minus a few exceptions. For example, most inspectors will not check chimneys or fireplaces. People who are present during the inspection may see the inspector doing things like flicking light switches, looking under cabinets, running water, flushing toilets, and testing every on/off switch they can.
Inspectors generally test all appliances, look for maintenance problems like cracked windows, broken doors, holes in walls and other problems. The home inspection can take a couple of hours or less, depending on how large the house is and how thorough the home inspector is.
After the inspection, the inspector writes a report of their findings. Most reports show the systems that were checked and the condition of that system. If the system is in poor condition, then the inspector may go into further detail about the problems that he or she observes. This can help the home buyer gauge what kind of condition the home is in and what will need to be done in order to get the home in livable condition.
Home inspections can even help home buyers determine whether the house they're trying to buy is worth the money they're paying. If the home is in poor condition, it may not be worth the purchase price.
Buying a Home? Contact a Real Estate Professional
The home inspection is just one step of the home buying process! If you're a home buyer, get some help with the process. Working with a professional real estate agent can help you find the house that will make you happy. For more information about getting started with the home buying experience, contact a reputable real estate professional today.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.2020-08-18T05:27:00-07:002020-08-18T07:29:37-07:00Robbie Breauxtag:lafayettehomepros.com,2012-09-20:568Real Estate Investment Guide for New Investors<img style="display: block; float: right; margin-bottom: 30px; margin-left: 15px; width: 475px;" src="https://assets.site-static.com/userfiles/2179/image/everything-to-know-about-real-estate-investing.jpg" alt="Real Estate Investment Information for New Investors" width="475" />Real estate investment can be exciting for the right individual. People who enjoy viewing properties, taking care of properties, meeting new people and working with businesses and families are very likely to enjoy real estate investment.
Real estate investment can be a profitable hobby or a full-fledged business. Here's what you need to know about making your real estate business work for you.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
Commercial Versus Residential
Commercial real estate investors buy property for commercial ventures like retail stores, restaurants, doctors offices, warehouses, factories and office buildings. Success in commercial real estate can be heavily tied to the economy, especially in certain sectors that depend on consumer purchases for success. Buying commercial real estate in the right location is critically important.
Retail businesses and restaurants often flock to areas where people want to be and where other businesses are already located. Knowing the area before buying a property, and knowing the habits of consumers and commercial enterprises in the area, is critical.
Residential real estate investors buy property where people live. This includes single-family homes and apartment complexes. Many people who start in real estate get their start in residential real estate, because single-family homes tend to be more affordable than commercial real estate investments.
People who enjoy working in residential real estate sometimes move over to commercial real estate after they've built up money for investing in larger properties, while some always work in residential real estate. Renting to tenants involves working closely with families or hiring a property management company. Anyone getting their start in residential real estate must consider these factors before making their first investment.
Residential Real Estate Investment Types
There are several types of real estate investment. The type of investment that a buyer chooses depends on their personal preferences, skills, what's available in their area and how much they have to invest.
Rental Single-Family Home
Single-family home rental properties are relatively low-cost in the world of real estate investment but require regular maintenance and continual upkeep. Homeowners with a rental single-family home may have a property management company, or they may manage their own upkeep.
When the property is vacant, it does not make any money, even though it must still be maintained. For this reason, it's important to keep the property rented as many months out of the year as possible. <a href="https://www.avail.co/education/articles/15-easy-ways-to-be-an-awesome-landlord" target="_blank">Being a good landlord</a> can help keep the property profitable.
Fix and Flip
Fix-and-flip properties are low-cost properties that investors purchase, fix up and then sell for a profit. The longer the investor owns the property, the more they must pay in taxes and for any loans they have for the property. Therefore, the best way to make money with a fix-and-flip property is to fix it up quickly and sell it quickly. The best investors for this kind of property are ones who have DIY skills and can do many of the repairs themselves.
Multi-Family Property
A multi-family property like an apartment building or a duplex may cost more money up front, but often has a greater chance of making money in the long run. As long as at least one unit in the multi-family property is occupied, the property will still make money. People who own multi-family properties often hire a property manager to maintain the property, especially if the property is very large with many units.
Commercial Real Estate Investment Types
Like residential real estate investment, commercial real estate investment can be divided into three different types.
Retail and Restaurant Space
Retail and restaurant space can be an up-and-down industry, so investors who work in this type of space must choose the location and the rental amount carefully. It's also critically important to keep up with properties that deal in this type of space. Restaurants and retail businesses need to be clean and well-maintained in order to attract customers.
Office Space
Office space usually has multiple units. Like a multi-family home, office space has a greater chance than many other businesses to make money because, as long as one unit is occupied, the property owner will still bring in income for that property. Like retail space, it's important for office space to be well-maintained in order to attract good tenants.
Industrial Property
Industrial properties are often specialized for the type of industry the property owner is trying to attract. Often, tenants will pay higher amounts for a specialized property, but this can also be limiting. Once a property has special accommodations for a specific type of industry, it can be expensive to change the property for a different type of industry.
Build Your Team: Find a Real Estate Professional
Your real estate professional is your ally in your investment project. Working with a real estate professional can help you make the right choices as you decide where to invest your money, how much money to invest, and which properties are right for you.
Your real estate agent can also help you negotiate the right price for each property so you can make the most money possible. Contact a real estate professional with a reputation for excellence and success in the industry.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.2020-08-11T06:39:00-07:002020-08-11T08:42:11-07:00Robbie Breaux